HP to make Unisys PCs

Unisys will contract Hewlett-Packard to manufacture notebooks, desktops, and entry-level Intel-based server computers, an announcement which follows last January's surprising news that it would no longer make these products itself.

HP will supply Unisys-branded products manufactured according to the "build-to-order" scheme, designed to reduce costs associated with inventory. Unisys did not specify when it would begin to receive HP computers, and no financial terms were disclosed.

On its own, Unisys will focus on higher-end servers for business applications as well as support and consulting services, the company said in a statement.

Unisys's PC business accounted for about $500 million in sales, it said, or about 8 percent of its annual revenues of about $6.3 billion.

Last January, the company said it would finish making PCs and low-end servers on order. At the time, Unisys also said it expected to retain a large part of its PC sales revenues by reselling the branded PCs.

Unisys chairman Lawrence Weinbach said the decision to stop manufacturing PCs was part of his effort to refocus the company. "While we are committed to providing a full range of technology systems and solutions to meet customer needs, we were not generating the volume needed to compete effectively and profitably in the PC business," he said in January.